Bill On Variable Electric Rates Gets Final Legislative Approval

Lawmaker: 'It's time to protect [electricity] consumers from the duplicitous variable'

HARTFORD — Lawmakers on Wednesday gave final legislative approval to a bill that would ban power companies from signing up residents for electricity contracts with variable rates.

The bill now goes to Gov. Dannel P. Malloy, who is expected to sign it into law. The measure would take effect Oct. 1.

The House of Representatives on Wednesday voted 144-1 in favor of the bill, with six legislators not voting. The Senate advanced the bill last week.

The legislation attempts to quell a source of aggressive and, to some, deceptive marketing on the part of power companies seeking to switch residents from the state's two utility-managed standard generation offers.

"It's time to protect consumers from the duplicitous variable," said Rep. Lonnie Reed, D-Branford, House chair of the energy and technology committee. "There has been some bad behavior from what I would call some bad actors. It's really being used to fleece people."

The bill affects residential customers only, Reed said, not business customers that have experts who can analyze and understand the complexities related to variable rates.

Although the bill would ban new contracts for variable rates, it does not address the main reason that residents get stuck paying rates that change by the month. The majority of residents with variable electric plans do not sign a contract for such plans; they roll over into a variable plan by the electric company at the end of their fixed-rate plans.

Even though the bill does not ban variable rates outright, it does require that regulators address the issue.

Rep. Ackert, R-Coventry, said 10 companies offer variable rates. He said that even after passage of the bill, and after it becomes law, consumers still need to do their homework when trying to get a deal on electric rates.

"To the consumer, you still have to do your due diligence if you want to play in this market," he said.

Rep. Piscopo, R-Thomaston, was the only one to express concerns during Wednesday's discussion in the House. He said the bill "may go a little too far."

"I have problems with this bill," he said. "It's just a few bad actors. It's terrible that it happens, but most companies who offer variable rates give a good deal on fixed rates."